July 24 (Bloomberg) -- Wal-Mart Stores Inc.’s Greg Foran, a
fast-rising executive at the retailer’s Asia operations, will
take over as head of its U.S. division for Bill Simon, who is
leaving the company.

Foran, a 53-year-old New Zealander, will replace Simon as
U.S. chief executive officer on Aug. 9, the Bentonville,
Arkansas-based company said today in a statement. Foran had only
served in his current role as head of the Asia business since
June, when he was elevated from CEO of Wal-Mart China.

Simon, 54, had been a contender to be CEO of the whole
company before Wal-Mart picked Doug McMillon as its next leader.
McMillon, who took the top job in February, was closer to the
Walton family, which controls most of Wal-Mart’s shares, people
familiar with the situation have said. Simon will remain
available as a consultant for the next six months to help with
the transition, Wal-Mart said today.

“This felt like the right time to move on and focus on my
next opportunity,” Simon said in the statement.

Today’s move was set in motion by Simon being passed over
for the CEO job and shoudn’t be interpreted as a change in
strategy, said Bryan Gildenberg, an analyst at Kantar Retail.
Wal-Mart first announced plans to elevate McMillon, 47, to the
position in November. He replaced Mike Duke, 64, who retired.

Transition Completed

McMillon previously ran the international business, where
he worked with Foran.

“Simon’s leaving is a natural completion of the
McMillon/Duke CEO transition process rather than representative
of a new shift in Wal-Mart’s direction,” Gildenberg said.
“Foran is one of the many talented executives McMillon
recruited and hired while running international that have taken
on broader responsibility since his ascension.”

In taking over the U.S. division, Foran will oversee a much
larger piece of the world’s largest retailer -- though one
that’s contending with sluggish growth. The U.S. performance
contributed to lower-than-projected sales and profit in Wal-Mart’s most recently reported quarter, which ended April 30. At
the time, Wal-Mart also forecast second-quarter profit that
missed estimates. Earnings will be $1.15 to $1.25 a share,
compared with the $1.28 predicted by analysts.

Smaller Stores

Foran will be tasked with continuing Wal-Mart’s push into
smaller-format stores -- an effort begun under Simon. The U.S.
division also is trying to integrate its e-commerce business
with brick-and-mortar sales.

For the new job, Foran will receive a salary of $950,000,
along with an incentive plan earning him as much as 300 percent
of that pay, or about $2.9 million. He also is eligible for an
annual equity award with a target value of about $4.9 million,
plus $1.63 million in restricted shares, and a $500,000 one-time
cash payment.

Wal-Mart shares have declined 3 percent this year. The
stock fell almost 1 percent to $76.35 at the close today in New
York.

Foran has more than 30 years of retail experience in
operations, merchandising and marketing. He previously ran
Woolworths Ltd.’s supermarket division and held other senior
roles at the Sydney-based company, including general manager of
the Big W chain of discount stores.

Woolworths in Australia has a similar approach to retail as
Wal-Mart, which made it easy for Foran to fit in at his current
company, Gildenberg said.

China Management

Foran joined Wal-Mart in 2011 and became head of the China
business in 2012. Foran was tapped for the Asia CEO job after
revamping operations, pricing and product assortment in the
Chinese stores. Wal-Mart said today it will announce its new
Asia chief at a later date.

The reshuffling follows the appointment of a new chief for
Walmart.com last month and the promotion of Canadian CEO Shelley
Broader to a job overseeing Europe, the Middle East and sub-Saharan African in May.

Last month, Wal-Mart also named board member Greg Penner to
the new role of vice chairman, putting him in position to be a
successor to Chairman Rob Walton. Penner, 44, is Walton’s son-in-law and has served on the board since 2008.

Simon, who ran the U.S. operation since June 2010, first
joined Wal-Mart in 2006 from Brinker International Inc., the
restaurant chain that owns Chili’s. He also had served as
secretary of the Florida Department of Management Services,
appointed by then-Governor Jeb Bush.